United Kingdom: Inflation ticks down again in April
Consumer prices rose 0.4% in April over the previous month, up from March’s 0.1% increase. April’s figure was driven in part by higher prices for health, transport and restaurants and hotels.
Inflation dipped to 2.4% in April from 2.5% in March, the lowest level in over a year and marking the third consecutive monthly decline. The figure undershot analysts’ expectations of 2.5% and was underpinned by lower air fares. As a result, inflation moved closer to the BoE’s 2.0% target. Meanwhile, annual average inflation remained steady from a month earlier at 2.8%. The pound lost value after the figures were released, with the market wagering that an imminent rate hike by the Bank of England is now less likely.